Little price competition in UK, says report
pharmafile | October 27, 2003 | News story | |Â Â Â
Price competition is not a major factor in the UK prescription pharma market, according to a Department of Health report.
The sixth annual report to Parliament on the Pharmaceutical Price Regulation Scheme (PPRS), found that in most of the 11 sub-markets studied, the first product to enter the market did not reduce its price in response to subsequent entrants, which typically launched at a lower price.
Furthermore, the original product managed to maintain its dominant market position despite a higher price point, suggesting a first mover advantage, said the report
The report noted that 5 of the top 10 and 10 of the top 20 therapeutic categories in 2000 were dominated by one firm, despite a fragmented industry. The largest market share by one company is only 13% and the top 10 companies account for less than 60% of the market.
The report also discovered that most doctors did not take a drug cost into account as one of their main prescribing influences. Clinical efficacy, safety, tolerability and convenience to the patient were all more important factors.
Neither the DoH nor the ABPI have requested a mid-term review of the PPRS, which limits the amount of profits the industry can make on its products.






